Reconnaissance Energy Africa Ltd (TSX-V:RECO, OTCQX:RECAF) (ReconAfrica) said Thursday it is advancing preparations to drill its largest exploration target to date, Prospect I, in Namibia, while expanding its footprint in the Etosha-Okavango basin with a new joint venture in Angola.
CEO Brian Reinsborough said the company remains “excited” about the potential of Prospect I, located on Petroleum Exploration License 073 (PEL 73), and expects the rig to move on site by late June, with spud to follow shortly after.
The company noted that logistical factors may affect the precise timeline, but management’s view of the prospect's potential remains unchanged.
ReconAfrica said the decision to prioritize Prospect I was supported by data from its earlier Naingopo exploration well, which confirmed carbonate reservoirs and signs of oil in the Damara Fold Belt. The company has completed community engagement and permitting processes, and is currently undertaking pre-construction work, including site clearing, demining and road development.
“We are keen to continue our work with shareholders, local government, joint venture and community partners,” Reinsborough said in a statement. “Management recognizes its responsibility to all stakeholders to steward the evaluation and exploration process of this vast portfolio with the utmost care.”
In a move to extend its regional presence, ReconAfrica signed a memorandum of understanding in April with Angola’s national oil agency, ANPG, to explore a 5.2-million-acre block contiguous with its Namibia license. The expansion follows the Namibian government's January approval of a farm-down agreement that gave BW Energy a 20% working interest in PEL 73.
The company also filed an updated resource report in April.